Wetex and XOX to expand micro-financing business jointly in Southeast Asia

Wetek Technology (M) Sdn Bhd is expanding its micro-financing business in Southeast Asia (SEA) and will rope in XOX Bhd as its partner for this venture. This tie-up will see XOX expanding its business outside of Malaysia for long term growth.

The two directors of Wetek are Howard Leung Hao and Liang Zeng and a quick research on them shows they have a strong financial background.

Leung Hao is the chairman and CEO of Brilliant (Hong Kong) Holdings Ltd and he looks after the overall strategic and international business development for the company.

He started his career in the 1990s in the IT and mobile internet industry and founded Beijing Ruidong Technology Co. Ltd in 2013.

Leung Hao has an eye of identifying market opportunities across the globe with experience managing a cross-cultural team of management. He is also a supporter of start-ups as he believes in the opportunity with young people and great ideas.

Wetek Director, Howard Leung

So when he saw the opportunity to build the micro-financing business in Malaysia, he waited no further and roped in XOX Bhd as its partner to provide micro-financing to the tune of RM1 billion to Malaysians.

XOX’s subsidiary, XOX Media Sdn Bhd has inked a partnership agreement with Wetek, which has committed RM1 billion in financing for this.

Why XOX?

Firstly, XOX’s subsidiary, XOX Media Sdn Bhd has inked a partnership agreement with Wetek to provide micro-financing to the tune of RM1 billion to Malaysians.

XOX is one of the top e-wallet licence holders in Malaysia. It has a strong existing subscriber base of 2.2 million and this could exceed 4 million by the end of this year as the company is growing exponentially.

A year ago XOX had proposed a rights issue with free warrants to raise up to RM66 million to fund its e-wallet and electronic SIM (e-SIM) businesses expansion.

XOX allocated RM33 million of the proceeds raised from the rights issue to expand its e-wallet function by developing a new mobile application to support micropayments, the issuance of Mastercards and peer-to-peer e-money transfers.

Some RM15 million was set aside for its e-SIM expansion as an alternative to the traditional SIM cards.

The NST quoted XOX CEO Ng Kok Heng who said the company aims to provide micro-financing to small business owners and individuals access to capital for expansion.

“Wetek is working in partnership with XOX as we have the e-wallet licence to carry out microfinancing. Micro Financing will be a growing business for both XOX and Wetek.

It will also improve the bottom-line of the company. We expect by the end of this year XOX will double its existing subscriber base and this would provide more business opportunities for us to expand in micro-financing. We have several on-going initiatives and our subscriber count is increasing day-to-day,” he said.

Wetek Director, Liang Zeng

Liang Zeng, meanwhile, is an internet entrepreneur and venture capitalist. He invests and incubates the companies in digital marketing, artificial intelligence and enterprise services.

He has held senior positions as senior vice-president (VP) of Kingdee International Software Group, VP of Microsoft Greater China, and most recently, VP of Baidu Inc. and CEO of Baidu Nuomi.

Liang Zeng also serves as board director and strategic advisor for multiple digital marketing and technology companies.

Looking at their profile, the micro-financing business introduced by them together with XOX will be a big deal for Malaysians who are currently burdened as they can’t get loans from the regular banks.

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